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INNOVATION GENETICS®

not new, but new for you, access the global brain

You don’t have to find something entirely new. Is suffices to find something existing, but new for your domain. Often we stay in our borders and look where the domain or the competitors are looking. The challenges that we are facing have possibly been faced by others but in a complete different domain. If you are trying to build a table that is strong by not to heavy, chances are that you will find inspiration in planes that are built strong but not heave. We are however faced with a ‘ not invented here’ syndrome. It is normal that we gain an expertise in a certain domain and we are thereby blinded by other domains. We need to move from ‘not invented here to ‘proudly found elsewhere’ . <<nobody is as smart as everybody >> <<someone somewhere solved my problem>> <<copying one idea is plagiarism, copying ten ideas is good research>> <<we are not smart but the rest of the world is smart>><<solve your problems with the worlds best inventors>>

We will present a methodology that will help you to find inspiration out of domain. It is easy to say “look out of domain” there are 360 degrees… This method will give some clues in how to systematically identify all domains that might have relevant knowledge to transfer into your products and processes. The key of the methodology is abstraction. If we formulate our challenges in an abstract way, we arrive in a generic domain. In this generic domain, we are surrounded with all the research that is in abstract facing the same challenge. In that way we have the inspiration for the taking.

One of the best resources to identify the domains is the patent database. Imagine you want to innovate on a squeegee. In abstract a squeegee is a system made out of rubber and metal, with is main function to remove water. With these keywords, one can immediately identify that a windscreen wiper is exactly the same. It has the same material properties and is made for the same function; to move liquids. Now if you look at the two domains, you can immediately see that the windscreen wiper has evolved much faster, with exigencies to have no traces or lines, with thousands of cycles guaranteed, and all this at a very sharp price. Rather then buying a new squegee, you better by a windscreen wiper, put a stick to it, it will be cheaper, better and last forever. The question here is: “what is like my product, but not my product.” We summarize the total of abstract properties and functions of your product in Product DNA or Process DNA. It is then up to you to identify related family products, to get inspired and transfer better genes. We call our methodology Innovation Genetics.

CREAX process

The method follows a four step approach. Everything starts from the customer. This is the person we want to bring value to. This customer can be seen as the end consumer, or the internal customer, the person to whom you report. One we have identified the needs of our customer we have the target value equation. In a second step we will chart out all resources we have. These resources can help us to fulfill or target values. Resources thinking is also referred to as out of the box thinking. The question is what is the box, and what is out?The third and strongest step in the methodology will be how to look outside your domain? Which domains are most fertile for technology transfer? This step will bring a procedure to create analogies with your own challenge. Finally, when we know what values we want, what resources we have and where we look for inspiration, we can wander what to change. What do we change, and what de we gain. This brings us back to the fist step, evaluating which new or improved value we have brought to our customer.

During this exploration, your will be required to brainstorm at several instances. The term brainstorming was invented by Alex Osborn. He setup a few rules to brainstorm effectively. First, quantity breads quality; the more ideas the better. Secondly and most importantly ‘postponement of judgment’, we tend to shoot down ideas before the can even find their shape. Try and allow ideas and focus what is novel about it, rather then why it won’t work. Third “hitch hiking”; when in group, do not feel hindered to work on other peoples suggestions, creativity is sharing imagination. Finally, “ freewheeling”, don’t wait for an opportunity to place an idea, it can come from anywhere, and fits anywhere.

What do customers want?4

Exercise 1A. What does your customer want? Place yourself in the shoes of your customer, may be a difficult one. The one you think of now . And list all possible requirements you can imagine. The more you can come up with the better. Take about 20 minutes for this exercise.

Every input should be saved in the session; later we will organise them by type of value

Exercise 1B. Which type of values have you identified? O over the list of reuerements and ask yourself wether every value is related to performance, harm, interface cost… more later.

5Perfect, always, everywhere and free

Where is the value?

In the present day environment there is the need to be creative for innovative solutions to guarantee competitiveness. With plenty of technology and knowledge as a commodity, clients want new performances, permanent solutions at affordable prices. The innovation value of new solutions can be measured on the basis of 4 factors: performance, harmful effects, user ease and expense. In short, this leads us to 4 perspectives for innovation:

Performance innovation: increase in performance of the addition of functionsDurable innovation: decrease in damaging effectsErgonomic innovation: more ease of use Economic innovation: lower costs

In the development of a product or process there are 4 factors that play a role, but usually one is dominant. Let us take an example before we go into detail. We take the example of a projector.

Exercise 2 What do we want from a projector? How do we decide what projector to buy? How do we compare a projector with competing products? What don’t you want in a projector? Spend 5 minutes in writing down what the decision criteria would be when you want to purchase a projector.

When you have noted down quality, image quality, illumination, contrast, sharpness, pixels; al these elements are related tot the performance of your projector. It is about more good. Competing on these elements is based on performance. If you find importance in the noise, the energy consumption, or the heat, this does not relate to more of the good, but less of the bad. You have the same performance, but less of the harm. In total this is also more value.All elements that are related to the ease of use, easy to connect, easy to transport, design, easy to clean are about the convenience. It is about the interface between the user and the projector. Finally you can compare based on cost; its cost of components, its total cost, its energy cost. The decision can thereby be influenced by the 4 parametes; you want more good, less bas, easier and cheaper…

PERFORMANCE: What can be better, what can be more?

This is the most evident factor to improve. It is about what the product is meant to do; its main function. A car needs to drive, a brush needs to clean, a perfume needs to smell. If you improve on the main function, your compete on performance. It is where strong R&D brings you the Rolls-Royce or the five star, the fastest, strongest, the highest performance. You win value through the improvement of main function, and the integration of new functions and performances. Examples of pure performance- innovation are faster cars, stronger glue, ultra sharp knifes, stronger magnets or lauder speakers. Examples of integrating extra functionality are for instance; a Swiss knife with USB stick, GSM with camera, integrated computer packages, fax-copy-printers, one-stopper shopping or multifunctional tools. Increased performance is the most obvious driving factor for innovation that leads mostly to increased margin. The ultimate factor is perfection. In a note of caution, one should be aware that the customer does not always require more performance. As mentioned, the choices of product are not based on only performance. For those who are older Betamax had stronger performance than VHS, and still VHS made the standard. It is not evident to measure its performance on the customer site, since there is a great deal of perception involved. What is the “perceived performance”. On the integration of new functions, there is also a note of caution. Too much integration is often a product overkill. The fax copier scanner printer might have some identity problems :-SA nice example of an integrated perfomance in processes is the Atlas Copco tree cutter: http://www.youtube.com/watch?v=6U6x3U8fTr8Some call it the tree terminator

6Performance to perfection

PERFORMANCEWhat the product or process has to do, what it is made for, the main

function, make that better or more. You can also introduce a new performance. Ideal performance is PERFECT.

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What can be less damaging, less harmful? A second focus of value creation is the reduction of harmful effects. Durable innovation addresses issues such as reducing waste, not warming up, more noiseless applications, safer or more trustworthy applications. For the projector this means for instance a non-noise cooling system through which we have no burden of annoying sound. Rather than focussing on more of the good, here you aim at reducing the bad. If you make a list of elements that bother you around your product or process, and than ask yourself, how can I reduce those. This is also creating more total value. Minus minus -is plus, as you put them perpendicular (– and – equal + ). The trend in durability links also close to the environmental innovation. It depends where you focus your value: be it harm to your customer, or harm to the environment. More later. Examples are biodegradable products, processes to reduce waste, safety articles, environmentally friendly discharge, safety fuses, airbags or passwords. Power is when harmful effects can be converted into advantages, for instance vaccinations (whereby the harmful virus is injected for immunity), heat as an energy source, rust as corrosion protective agent, or the weak glue of a post-it. If you are designing a circular saw, you may make a better cutting knife (performance) or focus on the danger of cutting your fingers. We all know someone who lost a finger in the process. This is what SawStop has created: Video on http://www.youtube.com/watch?v=ZV8eEGUDYc4 more later.

Idealy this value goes to harmless, bio or even restorative...can it be not damaging or even cure.SAAB claims in there car that the air going out of the car is cleaner than the air coming in. So the more you drive, the better for the environment ;-).

Less Harm to Harmless

LESS HARMWhat are the harmful elements in your system, harmful to the

environment? Sound? Heat? Time? Pollution? Ideally here you want a HARMLESS, SAFE or BIO system.

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What can be easier? What can be rectified or more convenient? A third perspective of value creation is the use of user friendliness or ergonomic innovation. The product can have the same performance or harm, but just easier to use. How convenient and ergonomic is the interface built up? Can we make the projector smaller or the operation easier? How can the interface be reduced or improved. The smaller the “hurdle” or the required better. It is not about the main function of the product, but about all the actions it undergoes through the usage. Your product may be transported, viewed, heard, held, pushed, connected or mixed. How can the customer actions be improved; for example the smaller telephones; easier to store, better grip to hold, lighter products to transport, aesthetically more pleasing to view, subtitles to understand, colour codes to differentiate, users profiles to recognise or transparent packing to inspect. Some call it human centred design. Anything related to beauty, aesthetics or style, we also classify in interface, as it relates to how the user interacts with the product.

A some cases the user friendliness is strengthened with the addition of the opposite components: pencil with gum, hammer with nail hiker, stapler machine with staple remover, one direction glass or cancellation insurance.

The ultimate user friendly product is one where no interface is necessary. Examples are: speech recognition instead of keyboards, self-service checkouts, self-reacting systems, unscrewing corkscrews or light sensors. There we speak of a self- or automatic interface. Self-cleaning, Self-balancing, self-repairing. The ideal interface is here no interface at all. An example of self- is selfrepairing. For those of you that ride a bicycle, it takes some time to repair a tire. Unless the tire is self-repairing. http://www.youtube.com/watch?v=XEv6CkRzsMs More on self later...

Easy to automatic

INTERFACEWhat is the user interface like? Can you make it easier, nicer,

design? What can be a better experience to the user? Ideally the interface goes to zero and the system goes to SELF.

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What can be cheaper? Finally, and an very popular in some sectors is economic innovation. The same for less: surplus value created through reduced expense, while maintaining functionality. Can we make the projector cheaper? Some refer to lean innovation. Cheaper flatscreens, Dell, Ryanair, Colruyt, pay per use or leasing.A technique to reduce costs is to try and elimate components whilst keeping all functionality. This is achieved by combining functionalities like a click cover so it is both cover and click, so screws or glue can be eliminated. A flexible bag that is squeezable so the pump or piston system can be eliminated (Unijet). A solar cover, so the power supply can be eliminated. More later. The maximum surplus value through economic innovation are the free models such as the paper METRO or free public transport, free software, Skype telephone communication, Google, sponsored events, JC Decaux (delivers free bus shelters to French cities) and YellowPages. The chalenge is to find another way of funding the action. An example of such company is Mega Media, they are going to building owners with a rater surprising question. Can we clean your facade for free? Well, of course you can . On the necessary scaffolding they place an advert which gives them enough income to pay for their work and margin. http://www.innovatiekanaal.be/uitzending05.html Another example, even future, is where it is not free, but you even earn. The company from waregem, belguim, askes the companies if they would be so kind to rent out their roof. Well, ok again, I don’t really need my roof this year... They place solar panels on the roof and go back to the company asking whether they would like some cheap electricity (from their own roof). And again it is a winning model. www.enfinity.be It is important in this direction to not only focus on the material or production cost, but also see what cost is involved by the user. The reason why IKEA getting such prices is that they have convinced their customer to take the assembly cost on their side. Al the sweat and swearing for two hours of assembly is also a cost

Cheap to Free

COSTWhat about the efficiency of the system? What are the cost

components? How can you reduce the cost of the user?Ideally the cost goes towards FREE product or process.

10examples productsexercise

Exercise 2Every product has all four component. However, new product sell one or two values mainly. For example, a Ferrari, doesn’t really sell cost but rather performance. Below you can find a set of products. Please circle the values you consider the product is selling. If you dont understand the product you can click thourgh to the description. Note that sometimes more than one value is sold. For example, the Ferrari sells performance, and also design, i.e interface.

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As seen in the previous exercise, every product has all four elements. The consideration of these four innovation factors is an efficient manner to address product evaluation. An innovation can be more expensive as long as it justifies the offered surplus value e.g. brand products or 5-star hotels. In striving to more of the positive (performance) and less of the negative (damage, interface and expense) we finally evolve towards always, everywhere and free of charge.

We can note that the three values durability, convenience and efficiency each represent an element of sustainability. Durability is the environmental aspect, green, the harm directly or indirectly related to the customer. The interface is referred to as social innovation. It is the interaction fro a social side. Finally the cost is about efficiency, the third and final component of sustainability.

A Value Equation

You can see the for angle a little like DJ mixing panel. More performance at more cost, or less harm and more interface etc. Often they are evolving more important over time, i.e. First it should work; a basic performance, than it should always work, so no more crashes, than you can work on the interface, and if everything is performand, durable and easy you can still make a difference in cost.

More or less for more or less

As we balance the values, we can identify quadrants of value propositions. First we can create more value for more price. This is the left top quadrant in which we offer expensive quality. Her we have the Rolls-Royce, the 5 star hotel, the exclusive Vertu. The opposite is to offer less for less. You get less service, for less price. Instead of 5 stars, you get a very affordable Formula 1 hotel. Instead of Rolls-Royce, you get a Logan. Note that some companies are offering both value propositions; pentium more for more and celeron less for less. Other example is Dolce Gabana and DG jeans. However it is often very challenging to do this with success, without harming one or the other. I remeber when a visionary CEO was proposing in a local company that was having a history and hierarchy in top high quality products, to make a low quality alternative... It was like a bomb exploding in the R&D department. Ideally for the company, it is selling less for more. Can we sell less product for more value. Some call this premiumisation. This can be done by focussing on convenience; just like the stain pen (anywhere) or the spray water. Ideally for the client is the right top quadrant, more for less. Clients always want more for less until they have everything for nothing. Give it to me free, perfect, everywhere and always... and I (might) take it.

PERFORMANCE

------------------------------------------------------------------------------------------------------

---What the product or

process has to do, what it is made for, the main

function, make that better or more. You can also

introduce a new performance. Ideal

performance is PERFECT.

LESS HARM

------------------------------------------------------------------------------------------------------

---What are the harmful

elements in your system, harmful to the

environment? Sound? Heat? Time? Pollution? Ideally here you want a HARMLESS, SAFE or BIO

system.

INTERFACE

------------------------------------------------------------------------------------------------------

---What is the user interface

like? Can you make it easier, nicer, design? What can be a better

experience to the user? Ideally the interface goes

to zero and the system goes to SELF.

COST

------------------------------------------------------------------------------------------------------

---What about the efficiency of the system? What are

the cost components? How can you reduce the

cost of the user?Ideally the cost goes

towards FREE product or process.

TRAINING TOOL 1: CUSTOMER VALUE

Exercise 3Think about the product or process you want to innovate on. It might be the one you used in Exercise 1. Fill in the columns below. First on performance what is the main function of your product or process. What does it have to do. Secondly, harm. List al the things you don’t want to have in your product or process. The interface, what are all the interactions with the user and finally the cost elements, remember, more than just material cost. Any element that can be seen as cost for the customer is important. Sometimes you might wander where to put it, if you have a doubt, put it in both columns. The tool is mainly to explore new values, not to be a 100% sure there position. What is the difference between performance and interface. A person can be very smart, but difficult to talk to . If performance is mainly about what it should do. Harm and Interface is mainly about how it does it.

14Angles of value

In exercise 2 we have seen that Cola Zero is marketed as a light product without sugar., so less harm. However, if sugar is the most expensive ingredient in regular Coke, then for the company it is less cost. So it really depends on value for whom? For the customer? For the environment? For the sugar supplier? What would be the best lawn mower for the neighbour? Exactly, a silent one, or one that doesn’t work on Sundays . For the customer, it is maybe on that is completely automatic. For the oil manufacturer, it is better it uses a lot of oil. For the salesman, it is one that has a lot of margin, or stops working after the guarantee .

Ideally, one could solve it on the grass side... Grass that doesn't need cutting. This is what http://nomowgrass.com/ has developed. Whereas http://www.actioneco.com/ has developed a completely silent lawnmower. http://www.husqvarna.com/ has worked on bringing the interface to zero, by developing a completely automatic, solar system. TenCate grass solves the problem in an even different way by manufacturing artificial grass that can be completely tuned to its application. You can see that focussing on different value elements will bring different solutions. Ideally we are looking for the most value by focussing on high performance, low harm, a minimum interface, and low cost. Your customer wants short grass. He doesn’t want a lawn mower. This is the function. The solution can be very diverse, as you can see on the examples above.

Solutions change, functions stay the same15

Both technologies are (wireless ) communication. The solutions are different, but the functions are the same. You will always want to communicate, but not always with a mobile phone. You will always want transport, but not always with a car. You always want hygiene, but not always with soap. The difference between both is that the function is actually what the client wants, the solution is what he’s offered. Innovation is about providing this function with better (i.e. more good, less bad, easier or cheaper) solutions.

Exercise 4Imagine a glass of water. If i ask you to take the water out of the glass, without touching the glass. How would you do it. Spend some time to fill in your options.

You probably started with a straw, then heating or put something in the glass, use gravity etc. . Some say just wait and the water will go away. If you wait long enough problems solve themselves . Brainstorming. We make a list of possible solutions, and then judge which one has the most value., which way is most performing, least harmful, easiest or cheapest. The list you made, be it extensive, is limited to your own experience. The more people in the room, the more ideas. Now imagine we have the whole world in the room. Our list would be pretty complete. Doing this in a more realistic way, we have to abstract our challenge into its function. Leaving the contect of glass and water, we can abstract move liquid. We are certainly not the first person that has tried to move a liquid. By asking this question we can already identify 48 ways to move a liquid on http://function.creax.com

Exercise 5: Think about the abstract functions in your product or process. After listing them you can go to the database and evaluate all alternatives to your current solution.

16Selling Washing Powder?

Why is thinking about function, and not just about the current solution important? Image you are a washing powder producer. If your objective is to sell more washing powder; you are in the solution direction. If your objective is to be in the business of ‘clean cloths’; you are in the function business. If you are indeed thinking the latter, you are aware that their might be other ways to have ‘clean cloths’, thank with washing powder. Once you abstract this function into ‘clean solid’, you can see that on http://function.creax.com there are 25 ways to clean a solid. This means there are ways that could be better, greener, easier or cheaper. It so happens that already in 2001, Sanyo identifies another way to clean cloths, i.e. the combination between ultrasound and electrolysis. By combining Electrolyzed Water's dirt dissolving and bacteria-removing properties with the cleansing power of Ultrasonic Wave technology SANYO has brought to realization the World's first "Zero-Detergent course" washing machine. Good news for the consumer, however, bad news for the washing powder producer. In the line of the method, we can say: The ideal washing powder is no washing powder, but the clothes are clean. Ideal …. is no …. but the function remains.

So the ideal screw is no screw, but it holds together. The ideal wire is wireless, but it transfers data. The ideal windscreen wiper is no windscreen wiper, but you view the road. The ideal key is no key but you reserve access. The ideal bottle opener is no bottle opener, but you can twist the cap. The ideal pen top is no pen top, but your pen doesn’t trace or dry. The ideal cash is no cash, but you can pay. The ideal quality control department is no quality control department, but the quality is ok. How can you achieve as much as possible function, with as little as possible system.